Summer Intership

Report:
(Prepared on the partial completion of the MMS Course from
Babasaheb Gawde Institute Of Management Studies)

Report on the Porfolio Management Services

Offered by Sharekhan Ltd.

Submitted By:
Mr. Utpal N. Upadhyay
Student at BGIMS – Sp. Marketing

Supervised By:
Mr. Manish Boricha
VP – HNI Acquisition, PMS and Corporate
Sales
Sharekhan ltd.
 Declaration

I hereby declare that this report on has been written and prepared by me during the academic year
2008-20010. This project was done under the guidance and supervision of Mr. Manish Boricha, on
partial fulfillment of the Master of Management Studies from Babasaheb Gawde Institute of
Management Studies.

I also declare that this project is the result of my own efforts and has not been submitted to any other
institution for the award of any Degree or Diploma.

Place: MUMBAI
Date: 7th July 2009

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 ACKNOWLEDGEMENT

I wish to express my sincere gratitude to Mr. Manish Boricha, (VP – HNI Acquisition, PMS and

Corporate Sales) for giving me the opportunity to do my summer training at his highly esteemed

Organization. And his Valuable guidance, advice, suggestion and constant encouragement rendered to

me at every stage.

I am grateful to his entire team, Mr. Anuj Doshi, Mr. Satish Vasan, Mr. Mandar Kakade, Ms. Rupa

Kaji for their advice and suggestions.

I am also thankful to them for giving me information and their valuable support during my training

period.

I am extremely thankful to my Faculty Guide Prof. Anu Sharma for invaluable Guidance and

Suggestions during my Training.

I am also thankful to all others who helped me directly or indirectly towards the completion of my

works.

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 Index:
Sr. No. Topics Page No.

1. Executive Summary 5.

2. Objective of the study 5.

3. Company Profile 6.

4. Major areas of improvement Identified 8.

5. Navigational Tool Kit 8.

6. Taxation Tool Kit 22.

7. On field Sales 23.

8. Conclusion 23.

9. Bibliography 23.

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 Executive summary:
SHAREKHAN Ltd, one of India's leading brokerage houses, is the retail arm of SSKI. With over 510
share shops in 170 cities, Head office at Lower Parel and India's premier online trading portal
www.sharekhan.com, customers enjoy multi-channel access to the stock markets.

Objectives of the study:

The basic objective of the study was to get familiar with the PMS process of client acquisition and
servicing and recommend optimal solutions to improve the process. Once this was done move on to
sales and acquire as many clients as possible.

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 Company Profile

Services offered by Sharekhan:

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 A Sharekhan Ltd offers the following services:
ƒ Online BSE and NSE executions (through BOLT & NEAT terminals)
ƒ Free access to investment advice from Sharekhan's Research team
ƒ Sharekhan ValueLine (a monthly publication with reviews of recommendations,
ƒ stocks to watch out for etc)
ƒ Daily research reports and market review (High Noon & Eagle Eye)
ƒ Pre-market Report (Morning Cuppa)
ƒ Daily trading calls based on Technical Analysis
ƒ Cool trading products (Daring Derivatives and Market Strategy)
ƒ Personalised Advice
ƒ Live Market Information
ƒ Depository Services: Demat & Remat Transactions
ƒ Derivatives Trading (Futures and Options)
ƒ Commodities Trading
ƒ IPOs & Mutual Funds Distribution
ƒ Internet-based Online Trading: SpeedTrade

PMS services offering Product – Protech & ProPrime

ProPrime- PMS for Fundamental

Protech –PMS For Technical’s

Four products are offered under the PMS Technical Sceme:

•Nifty Thrifty: An Automated model based trading system in Nifty

•Beta Portfolio: Taking directional/positional trades on an a trend based on

momentum

•STAR Nifty: Using technical analysis to stop and reverse positions on

the Nifty

•Trailing Stops: Momentum trading in stock and index futures for short term returns,

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Portfolio management Department:

There is a separate PMS department in sharekhan Ltd. They provide PMS services basically for HNI
(High Net worth Individuals) Clients who have to invest minimum amount of Rs. 5 Lakhs in Pro Tech or
Rs. 10 Lakhs in Pro Prime.

There is a dedicated team of 4 at the head office who look after the PMS clients’ acquisition and
customer service.

Major areas of improvement identified:

KYC (Know Your Customer):

The PMS KYC of Sharekhan required a total of 24 signs from the client and his nominee, which was
bigger than that offered by Kotak PMS which required only 12 signs.

The suggestions were recommended to reduce the number of signs required from the clients and the
due changes were made by the concerned department.

NAV (Net Asset Value) queries:

There were a lot of queries coming for the NAV enquiry as the clients were not aware that the same
could be checked out on the Sharekhan’s website. Thus a navigational tool kit was prepared for the
clients to make them familiar with the process. The tool kit was emailed to each client once it was
prepared.

Navigational Tool Kit:

This tool kit will help the clients to use the PMS online portal with ease

About PMS Online portal

1) This is a view based login for all our PMS clients who have invested in Sharekhan’s Diversified
Equity scheme (Fundamental PMS).

2) The NAV is updated on daily basis and the reports are updated fortnightly.

3) This view based login will gives the clients details like daily

a. Portfolio Value
b. Ledger, bank book, etc
c. However, in case the clients need a detailed report they will have to send an email to
the Customer Services at the head office.

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 4) In case the clients’ have locked their PMS online login they would have to send an email to the
customer service at the head office.

In the address bar of Internet explorer type

https://www.mysharekhan.com/pms and hit enter.

Once you hit enter following page would appear.

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Once below page appears, enter your login id and password in the
space provided and hit submit.

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The following page would appear on entering your login id and
password.

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You would be able to check the details which are circled.

A- Date of account opening

B- Date of account activation
C- Your branch name
D- Current value (NAV)

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The further links would now help you to check details of your account
history.

1) REPORTS – EQUITY – TRANSACTIONS, Gives details of buying and

selling done in client’s account.

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2) REPORTS – CLIENT – GAIN / LOSS; Shows gain/loss statement.

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3) REPORTS – CLIENT – VALUATION REPORT; Gives the valuation
details as on the selected date.

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 5) REPORTS – MANAGEMENT – PORTFOLIO ACCOUNT SUMMARY;
Gives details like overall performance of the Scheme.

The links shown in point B can lead you to investment in equity,

cash balance, balance kept in bank etc.

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5) REPORTS – ACCOUNTS – BANK BOOK; Gives the details of the
transactions done in Axis / HDFC bank a/c opened for the client
however operated by Sharekhan.

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6) i) REPORTS – ACCOUNT – LEDGER; Shows client’s complete ledger.

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6) ii) REPORTS – ACCOUNT – LEDGER; Select details to be viewed
from the drop down highlighted.

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6) iii) REPORTS – ACCOUNT – LEDGER; Once you select the required
detail from the drop down list, the following screen would appear.

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TOOLS – CHANGE PASSWORD; Allows the clients to change their
password.
PMS client’s are requested to change the password once they log-in
for the first time, It is essential with regards to security of your
account.

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 Taxation tool kit:

This tool kit was the result of many enquires which use to come to the customer service to know about
the tax liability of the client.

The following tables give the details of the tax liability:

Note: Long term capital gain is except and in case there is a loss in long
term the amount is carried forward.

Documents provided by Sharekhan to the PMS clients for IT purpose:

1.) Investment Summary

2.) Transactions done in that particular period
3.) Holding Statement
4.) Ledger
5.) Gain-loss on Equity / MF
6.) Trail Balance
7.) Balance sheet
8.) Debit Notes (Fees Accrued)
9.) 10DB STT Certificate.

Note: 1. All Capital Gain Tax is deducted under Section 45 of Income tax Act, 1961
2. The tax rate is exclusive of the applicable surcharge and education cess.
3. Profit sharing, brokerage charges and any other expense will be treated as and expense
and would be deducted from the profits.

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 On Field Sales:

Once this was done I moved onto the field to sell the PMS accounts to the lead generated through the
internet.

I had to approach the client who showed interest in the PMS account and convinced them about the
benefits of investing in the PMS account.

Once the client was convinced a runner up was sent to get the required form filled.

I had converted 3 prospective clients into actual clients. They invested in one of the PMS technical
schemes known as Nifty Thrify. The corpus that came in from them was Rs. 15 lakhs.

Conclusion:
Portfolio management services are not that famous in India and have a lot of scope for growth.
Sharekhan PMS has a lot of potential to grow and is slowly expanding in the Portfolio Management
Services it offers. Many of the clients whom I approached during the on-field sales were more
interested in getting the short term benefits which is not quite possible with the investments in the
Portfolio Management Services as these services are to build a strong Portfolio for the client over a long
period of time (3-5 years).

Bibliography:
www.sharekhan.com
PMS employees and internal website
Inter CA – Tax Module

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